New Auto-Debit Payments Rules From the Reserve Bank of India Will come into effect from October 1, 2021

Cardholders with debit or credit cards can disapprove automatic debits from next month, and auto-debits can also be approved. With effect from October 1, some automated debit and credit card payments may fail for customers who use the facilities for recurring payments. The Reserve Bank of India (RBI) mandated this rule.
The Reserve Bank of India (RBI) rules on additional factor authentication (AFA) will now enter into force on October 1. Subscriptions to OTT services and other services will not be automatically deducted after the implementation.

• Debit cards, credit cards, and prepaid cards will all be subject to the AFA's rules. All auto-debits under 5,000 rupees must also follow the new rules.
• In accordance with AFA guidelines, automatic debit payments will only be made after customer approval. Instruction about the payment due date must be sent by the banks to the customer, 24 hours in advance. The payment will be subject to modification or cancellation by the customer.
• This requires customer approval upon notification according to AFA guidelines. Payments exceeding Rs 5,000 require the use of an OTP. Customers and financial institutions alike are protected from financial fraud by these guidelines. Financial institutions notify customers when the rules change.
• Subscriptions to OTT services, utility bill payments, and subscriptions to news websites may be affected. EMIs for home loans, auto loans, mutual fund SIPs, and premium payments for insurance will not be affected, however.
• On April 1, 2021, the regulations were set to take effect but were subsequently extended for six months.
• The Reserve Bank of India, in its original announcement, had invited additional factor authentication to be implemented during the next six months. RBI noted that the period has been extended to address the large number of customers who were inconvenienced.
• Upon implementation of the new system, all service providers must implement it by September 30, according to Reserve Bank researchers.
• After October 1, credit, debit card auto-debit payments may fail if they are not approved. The Bank says they will implement new rules that will safeguard customers.
• Customer messages were sent to all the big banks describing the possibility of automatic payment by card.